Common use of Readvances Clause in Contracts

Readvances. In the event the Loan and/or the Guarantor Mortgage do not already specify then the following provision shall be added to the loan terms and the Loan and Guarantor Mortgage shall be considered as amended: When not in default, the Borrower may request, and the Credit Union may, in its absolute and sole discretion, re-advance any principal portion of the within loan which has been repaid by the Borrower to the Credit Union, but only to the extent that the principal balance outstanding after such Readvance shall not exceed the amount of the principal sum secured. The Borrower and Guarantor agree that notwithstanding that the loan may be reduced and readvances made, this Guarantor Mortgage secures all sums ultimately due and owing by the Borrower and Guarantor to the Credit Union in respect of this loan, including any readvance of principal monies made by the Credit Union to the Borrower at any time, following execution of an Amendment Agreement – Readvance on Guarantor Mortgage. No change to the terms of repayment, the obligations of the Borrower, or the manner of payment or the amount of interest shall operate as a release or discharge of the Guarantor Mortgage or other security.